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PROCESSING OF TENDERS AND CVC GUIDELINES
Kashi Nath Jha Dir., NICF
WHY TENDERING ????
Fundamental Principle of Public buying
Procurement of goods in Public Interest Efficiency,Economy, Transparency (B) Fair & Equitable treatment of suppliers (C)Promotion of Competition
PUBLIC PROCUREMENT : YARDSTICKSSpecifications in terms of qualityNeed based procurement (avoid excess)Fair, Reasonable & Transparent procedureProcurement Vs RequirementReasonableness of Rate Each stage of procurement should be recorded
GFR: Rule 145Purchase of goods without quotation
Value upto 15000/-
Certificate to be recorded by the competent Authority I,------ am personally satisfied that these goods purchased are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price.
GFR: Rule 146Purchase of goods by Purchase Committee>15000/- and upto 1Lac on each occasionThree members Committee as decided by the HoDCommittees responsibilitiesMarket SurveyReasonableness of RatesQuality & SpecificationsIdentify appropriate supplierJoint Certificate by the Committee
Purchase of goods by obtaining bids(Tendering)Ministry / Departments of Govt. of India have been delegated full powers to make their own arrangements for procurement of goodsRule 141 of GFR says about Central Purchase Organisation (e.g. DGS&D) RATE CONTRACT
Types of TenderIn broader terms there are three types of tender : - Open Tender
Method of obtaining bid : Advertised Tender Enquiry (open )Tender value >= 25 LacAd in Indian Trade Journal(ITJ)At least one National Daily having wide circulationPublish at own website & NIC websiteNIT to Indian Embassies abroad as well as foreign embassies in IndiaThree Weeks time from date of publication of bid
GFR : 151- LIMITED TENDERValue up to 25 LacBid document should be sent to Regd. Suppliers by Speed Post/Regd Post/Courier/ e-mailNo. of supplier firms in Ltd. Tender should be more than threeWeb based publicityN.B. Sufficient time should be given in Ltd. Tender
Two Bid SystemTechnical Bid (Tech. + Comm. Terms )Financial Bid (Item wise price ) (1) + (2) = (3) Main Envelop Firstly Tech. Bid shall be opened and evaluated Secondly Fin. Bid of Technically acceptable offer should be opened & evaluated
Single Tender If only a particular firm is the manufacturerEmergent need to procure from a particular sourceTechnical reason to be recorded (standardization of machinery HP, SONY etc. )N.B. - Single response to an open bid cant be termed as Single Tender
Standard Bid Document : - Instruction to BidderConditions of ContractSchedule of RequirementSpecifications & allied Tech. detailsPrice ScheduleContract FormOther Standard Forms
Earnest Money DepositTo safeguard the interest of Deptt (withdrawal / alter the bid by bidder)Exemption Regd. With Central Purchase Organisation / National Small Industries CorporationEMD - 2 % to 5% of estimated valueCan be DD/ FDR/Banker Cheque /BGUnsuccessful bidders EMD should be returned /refunded at the earliest.
Performance SecurityFrom the successful biddersAmount 5% to 10%DD/FDRShould be valid for 60 days beyond the date of completion of all the contractual obligations of the supplier including warrantyBid Security should be refunded on receipt of Performance Security
Process at a glance Estimate (Qty. and Amount) EOI Expression of Interest RFP/RFQ Request for Proposal / Quotation PBC Pre Bid Conference NIT Notice Inviting Tender APPROVAL WEB PUBLICITY EMD Earnest Money Deposit BIDDING TOC Tender Opening Committee (Tech) APPROVAL
Process at a glance TOC Tender Opening Committee(Fin. Bid) APPROVAL TEC Tender Evaluation Committee APPROVAL PO - Purchase Order AWARD OF CONTRACT SD - Security Deposit AGREEMENT REFUND OF EMD NOTICE / WEB PUBLICITY ABOUT AWARD OF CONTRACT(Downloadable form)
EVALUATION PROCESS - micro Tender is sealedTender documents must clearly specify evaluation criteria.Two types of Bids:TechnicalFinancial Tender evaluation to be in accordance with evaluation criteria.
EVALUATION PROCESS - microTime taken for evaluation and extension of tender validity.Process of tender evaluation to be confidential until the award of the contract is notified.Difference between TOC (Tender Opening Committee) & TEC (Tender Evaluation Committee)
EVALUATION PROCESS - microThe factors for initial examination:Whether the tenderer meets the eligibility criteria ?Whether the crucial documents have been submitted & duly signed / attested ?Whether the requisite EMD (Earnest Money Deposit) has been furnished ?
EVALUATION PROCESS - microSatisfaction of Conditions specific to the contractSample TestingCapacity Evaluation.TurnoverStatutory documentationArrival at Outcome Price of the bidDetermination of L-1, L-2, L-3Determining Reasonableness of the L-1 RatesRecommendation for Negotiation (if require)
CVC Guidelines: Pre-Award StageFinancial and Technical sanction of competent authority is available.Adequate and wide publicity is given. Advertisement is posted on website and tender documents are available for downloading.Convenient tender receiving/opening time and address of the tender receiving officials/tender box are properly notified.In the case of limited tender, panel is prepared in a transparent manner clearly publishing the eligibility criteria. The panel is updated regularly.Pre-qualification criteria are properly defined/ notified.
CVC Guidelines: Pre-Award StageShort listed firms/consultants are fulfilling the eligibility criteria. There is no deviation from notified criteria during evaluation.Experience certificates submitted have been duly verified.Tenders/bids are opened in the presence of bidders/their authorised representative.Corrections/omissions/additions etc., in price bid are properly numbered and attested and accounted page wise. Tender summary note/ Tender opening register is scrupulously maintained.Conditions having financial implications are not altered after opening of the price bids.
CVC Guidelines: NegotiationsCircular No. 4/3/07, 3rd March, 2007As post tender negotiations could often be a source of corruption, it is directed that there should be no post-tender negotiations with L-1, except in certain exceptional situations. Such exceptional situations would include, procurement of proprietary items, items with limited sources of supply and items where there is suspicion of a cartel formation. The justification and details of such negotiations should be duly recorded and documented without any loss of time.
Latest guideline of CVC on negotiation
Procurement of Works, Goods and Services - Guidelines on Tenders/Use of website